In July 2011, Agriterra acquired Tropical Farms Limited ('TFL'), a cocoa company based in Sierra Leone, creating a third division to the business.
TFL provides the Company with a platform from which to expand into cocoa production by making use of TFL's regional expertise and established buying operations in West Africa.
Agriterra intends to focus on securing cocoa supplies for the business through a combination of forging long term relationships with farmers and out-grower schemes, implementing farm management initiatives and in time, through the development of the Company's own cocoa plantations.
With four buying centres currently in operation and a direct buying register of approximately 2,000 farmers across Sierra Leone, the Board of Agriterra believes that TFL's established base of 'out-growers' provide a solid base from which it can be rapidly expanded under the Agriterra umbrella. It is the Company's intention to develop additional community buying centres across the district, whilst also providing further solar drying and fermentation facilities, in order to increase total buying capacity as well as guarantee supplies of cocoa. In addition, TFL's buying model enables the origins of supplies to be traced without the need for local agents.
In keeping with Agriterra's beef and maize businesses, the Board intends to transform TFL into a vertically integrated business, utilising a 'tree to market-place' business model. As well as organic development, the Board is currently evaluating additional acquisition opportunities from which to expand its activities.
Securing cocoa supplies for the business through a combination of forging long term relationships with farmers and out-grower schemes.